Bailout EthicsAmericans are outraged. Billions of taxpayer dollars were committed last year to rescuing firms such as Citigroup and the American International Group (AIG). Earlier this year, several companies who received Troubled Asset Relief Program (TARP) assistance were awarding top executives with extravagant bonuses. According to the Wall Street Journal, the U.S. government lent $238 billion in TARP taxpayer funds to almost 700 banks; 44 of these banks have repaid a $71 billion (Johnston, para 6). There remains $167 billion invested in banks. Some critics argue that a “mere” $167 billion is not significant to warrant public indignation against bonuses. However, the issue is not about specific bonus amounts but the principle of business ethics and responsibility. It stands to reason to ask: Is it ethical for companies who have benefited from government bailouts to reward themselves with bonuses? Answering this question is not simple. The ethical dilemma pits the sanctity of bonus contracts against the American government’s interest in maintaining a stable economy. Companies fear losing crucial employees if bonuses are cut too deeply. Critics of bailout bonuses, such as Sen. Olympia Snowe (R-Maine), ask: “Bonuses for what?” (Johnston, para 13). The question is commonly asked because these “crucial” executives are ironically seen as the likely culprits responsible for the ongoing financial crisis. On the other hand, proponents argue that interfering with the bonuses constitutes a violation of “sacred” contracts (Collins, para 4). Although there may be legal claims to bonuses, some of their moral aspects do not stand to scrutiny. This ethical dilemma can be best understood by applying ethical standards such as the Rights and Common Good Approaches. Rights Approach: Definition and Analysis

The Rights Approach focuses on protecting and respecting the moral rights of entities affected by an ethical situation or dilemma. The approach says that each human being has dignity and is worthy of respect. Therefore, humans have legitimate claims on others and their society. The principle states: "An action or policy is ethical if it protects or advances moral rights” (Markkula, para 10). Organizations have the legal right to pay their employees whatever amount they choose. However, rights come with responsibilities. These responsibilities include respecting the rights of others. Assuming there are no performance clauses in the contracts, executives may also have legal rights to their bonuses. Similarly, the U.S. government and the American people have the right to expect their investment in the banks to be used for only what is necessary for survival. An action is moral when it respects the moral rights of everyone involved. Arguably, neither the banks nor executives have moral rights to these bonuses unless the TARP loans are repaid. The moral rights to pay or accept bonuses do not stand under the ethical microscope because circumstances have drastically changed. Without TARP funds many banks would have collapsed and consequently, no bonuses would have been given (Sorkin, para 9). In light of this fact, banks and executives have a moral obligation to the American people—not to seek after their own self interests, but to maintain a stable economy. Without a bailout, many executives would likely be unemployed (Collins, para 8).Taxpayer funds gave them a second chance to clean up the financial mess that they played a role in creating. Rights Approach: Examples

In one example of applying the Rights Approach to bailout bonuses, Goldman Sachs repaid its $10 billion TARP loan. Shortly afterward, Goldman paid bonuses and consequently received public criticism (Sorkin, para 12). Critics believe that Goldman executives did not deserve bonuses. Opponents said that much of Goldman’s current prosperity can be traced to government assistance and that these bonuses came too soon following repayment of TARP funds. In this particular case,...

...A bailout could be done for mere profit, as when a predatory investor resurrects a floundering company by buying its shares at fire-sale prices; for social improvement, as when, hypothetically speaking, a wealthy philanthropist reinvents an unprofitable fast food company into a non-profit food distribution network; or the bailout of a company might be seen as a necessity in order to prevent greater, socioeconomic failures: For example, the US government assumes...

...﻿Abstract
This paper explores the ethics of bank executives receiving large bonuses despite the fact that they received a bailout. I identify the utilitarian and deontological implications of these executives’ actions. This paper also examines if the executives deserved the bonuses, did the banks need a bonus, and how the banks should have been regulated by the banks.
Keywords: bailout, utilitarian, deontology...

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The Negative Effects of Bailouts
Jeremy Hurwitz
2211E
March 18th
A bailout is defined as the rescue of an economic unit from actual or potential insolvency, the rescue being performed by a separate economic entity. In a bailout, a rescuer intervenes in an economic quagmire that is too drastic that the entity which requires a bailout cannot wait for the market forces to correct themselves and...

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“Organizational Ethics”
John Alvin Carter
ETH/316
April 1,
Richard Sorrentino/Facilitator
“Organizational Ethics”
Organizational Ethics are an integral part of any successful organization. Without an ethical foundation, the organization is ripe for many different types of internal issues that stem from lacking values and ethics.
DART (DALLAS AREA RAPID TRANSIT) and Organizational Ethics
I am currently employed in...

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Code of Ethics
Anonymous
HCS/335
April 7, 2014
Patricia Daugherty
Code of Ethics
Introduction
The organization’s code of ethics serves as a guide to its employees when making difficult decisions. Ethics helps professionals with their actions and practices that are directed to improve the welfare of people in an ethical way (Fremgen, 2009). An organization’s culture and mission statement also help its employees make...

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American Psychological Association Ethical Code.
http://www.apa.org/ethics/code/index.aspx#
A Code of Ethics can be an overly complicated document that seeks to embrace every detail of behaviors that will not be acceptable to senior company management if found out. Meanwhile employees are pressured to deliver results which will often be enhanced if they do not strictly adhere to the Code of Ethics. The contention is that ethical codes are important...

...﻿Kevin Vixamar
May 1, 2013
Ethics
TOPIC: Racism
Racism is usually defined as views, practices and actions reflecting the belief that humanity is divided into distinct biological groups called races and that members of a certain race share certain attributes which make that group as a whole less desirable, more desirable, inferior or superior.
Racism and racial discrimination are often used to describe discrimination on an ethnic or cultural basis, independent of whether...